Question $27$

$6$ pts

Take It All Away has a cost of equity of $10\mathrm{.}63$ percent, a pretax cost of debt of $5\mathrm{.}33$ percent, and a tax rate of $22$ percent. The company's capital structure consists of $71$ percent debt on a book value basis, but debt is $31$ percent of the company's value on a market value basis. What is the company's WACC?

$8\mathrm{.}99\%$

$8\mathrm{.}62\%$

$9\mathrm{.}10\%$

$9\mathrm{.}59\%$

$11\mathrm{.}67\%$